Developing a business based on your specialty
Sep 12, 2008
Over the last few years, I have studied businesses whose main competitive assets are their founders’ talents or skills.
Over the last few years, I have studied businesses whose main competitive assets are their founders’ talents or skills.
Heavy dependence on individuals’ abilities, rather than easily expandable assets such as equipment, implies that these businesses find it difficult to increase the scale of their operations.
Such firms include creative industries such as design and human-resource-intensive fields like law, beauty, medicine and consulting. Such businesses respond to the talents and personalities of individuals, particularly founders.
The challenge is that without the owner’s presence, such businesses often stumble and fail.
For a business whose foundation is solely based on the owner to succeed, there is great need to design and develop systems which will guide the company’s growth.
The entrepreneur must draw a succession plan which details how the business will grow without her.
This will not only increase internal productivity but will also reduce the owner’s involvement.
Failure to develop leaders and managers within the business limits innovation and employees commitment to their jobs.
It is very hard for the owner to separate herself from the business; however this leads to entrepreneurship burn out and stress.
I know as a customer, when you walk into the salon for example, you always want the owner to handle your hair not the employees.
This comes naturally because there is a sense of trust and past experience.
However, this not only over loads one person but also creates long queues.
The owner should empower employees so that some work is delegated to them.
This involves training and moral support in order to grow their confidence.
One of the critical factors that influence growth in such firms is continuous learning.
Many businesses limit the amount of success they attain by failing to continue learning.
You should do everything possible to learn and teach your employees whatever you can about the complexities of the industry.
Just remember….............. the failures of the 21st Century are those who can’t Learn, Unlearn and Relearn.â€
Heavy dependence on individuals’ abilities, rather than easily expandable assets such as equipment, implies that these businesses find it difficult to increase the scale of their operations.
Such firms include creative industries such as design and human-resource-intensive fields like law, beauty, medicine and consulting. Such businesses respond to the talents and personalities of individuals, particularly founders.
The challenge is that without the owner’s presence, such businesses often stumble and fail.
For a business whose foundation is solely based on the owner to succeed, there is great need to design and develop systems which will guide the company’s growth.
The entrepreneur must draw a succession plan which details how the business will grow without her.
This will not only increase internal productivity but will also reduce the owner’s involvement.
Failure to develop leaders and managers within the business limits innovation and employees commitment to their jobs.
It is very hard for the owner to separate herself from the business; however this leads to entrepreneurship burn out and stress.
I know as a customer, when you walk into the salon for example, you always want the owner to handle your hair not the employees.
This comes naturally because there is a sense of trust and past experience.
However, this not only over loads one person but also creates long queues.
The owner should empower employees so that some work is delegated to them.
This involves training and moral support in order to grow their confidence.
One of the critical factors that influence growth in such firms is continuous learning.
Many businesses limit the amount of success they attain by failing to continue learning.
You should do everything possible to learn and teach your employees whatever you can about the complexities of the industry.
Just remember….............. the failures of the 21st Century are those who can’t Learn, Unlearn and Relearn.â€